TaxTMI 
TaxTMI 
2019 (6) TMI 1124
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....educted the TDS in some of the payments made in which the TDS is applicable and in some cases, the deductor has made short deduction. When the deductor was asked to explain the reasons for non-deduction/short deduction of tax at source, the deductor submitted Form No.15G/15H of some of the customers and has not offered any explanation in the remaining cases. The AO further observed that the deductor has not deducted the TDS on the basis of Form No.15G/15H. Even though the interest payment was more than the basic limit, the deductor paid the interest without deduction of tax at source obtaining Form 15G/15H. Therefore, the AO proposed to treat the deductor as assessee in default, since, it has failed to deduct the tax at source and remit to the Government account within the stipulated time as prescribed under the Income Tax Act, 1961 (in short 'Act'). Accordingly issued the show cause notice calling for explanation of the assessee intimating the default amount of Rs. 13,96,381/- in 15 cases excluding interest u/s 201(1A) for the F.Y. 2013-14 (A.Y. 2014-15) and Rs. 18,71,389/- for the F.Y.2014-15 (A.Y.2015- 16) in 16 cases. 3. In response to the show cause notice, the assessee filed....
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....ETS3092E 1475095 147510 25 36877 184387 4. MERCHANTS MINI MUTUALLY COOP THRIFT AND CREDIT SOCIETY LTD. AAALM0048A 906446 90645 25 22661 113306 5. KANNA RANGAIAH CHARITABLE TRUST AACTK1262E 668300 66830 25 16708 83538 6. COMMISSIONER OF COLLEGIATE EDUCATION HYD AND SECRETARY AAATT8931D 571976 57198 25 14299 71497 7. KOLLA VENKATESWARLU AGTPK2534N 409896 40990 25 10247 51237 8. SRI VASAVI NITYANNA SATRA VANAPRASTHASRAMA SEVA SAMITHI AABTS6325D 350395 35039 25 8760 43799 9. POLISETTY SOMASUNDARAM CHARITIES AAATP6658D 344974 34497 25 8624 43122 10. KOLLA SIVA NAGENDRAMMA AGTPK2534N 300264 30026 25 7507 37533 11 NARANGI DEVI 292163 29216 25 7304 36520 12 BABITA DEVI 282939 28294 25 7073 35367 13 GUNDA SIVA SURYA KUMARI 269871 26987 25 6747 33734 TOTAL 13558341 1355834 25 338959 1694793 NO PAN CASES 14 MORISETTY SAMBASIVA RAO WRONG PAN 265598 53120 25 13280 66399 15 VASUNDHARA DEVI SV NO PAN 11088 2218 25 554 2772 16. SUMAN PINNAMANENI VEERAGANDHAM NO P....
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....her the trust customers can spend 85% of their receipts for the objects of the trust or not. It is premature to come to conclusion beforehand that these trust clients would qualify all the conditions laid down u/s.13 to claim exemption u/s.11 even before they draw their income and expenditure account for F.Y. 2013-14. These trust clients are not connected to appellant bank in any way except keeping their funds with the assessee bank. How the bank authorities would know that the trust client would fulfil all the conditions to claim exemption u/s-.11 of the I.T. Act. Therefore, the plea of the appellant bank that they need not deduct tax u/s. 194A in case of the trust clients is not acceptable. The remaining 7 customers are individuals. The appellant bank has produced form No. 15G and I5H now. Had they been filed by the customers they would have been produced to the Assessing Officer during the course of survey action. When the bank authorities produced the same in case of other clients, there is no reason for not producing the same in case of these clients. Hence, I conclude that these forms are prepared, obtained from its customers now. It is nothing but after thought. The appell....
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....ll the deductees and restrict the demand to the extent of 201(1A). The assessee is directed to submit the necessary documents before the AO. Accordingly, the appeal of the assessee relating to the deductees who filed the returns of income declaring the income relating to the interest received stands partly allowed for statistical purposes for both the assessment years. The AO is directed to give opportunity to the assessee before concluding the proceedings. 8. The next category of the cases are, the deductees filed Form 15G/15H before the CIT(A). The Ld.AR argued that having collected Form 15G/15H, the deductor is not permitted to collect the TDS, hence, the AO is not justified in treating the assessee as assessee in default and raising the demand u/s 201/201(1A) of the Act. 9. We have heard the rival contentions and agree with the Ld.AR that if, the deductor collects Form 15G/H, there is no need to deduct the tax from the eligible assessees. However it is duty of the deductor to establish that the Forms-15G/H were obtained before the due date or before making the payment. Having not furnished the copies of 15G/15H during the course of survey or in response to the show cause noti....